Groupon Inc rebranded as Nearbuy, to focus more on mobile apps

Along with the rebranding, the company will focus more on mobile apps, connecting buyers with deals in their localities.NEW DELHI: Barely three months after selling a controlling stake in its South Korean unit, US-based daily deals company Groupon Inc. is ceding control in its Indian arm to promoters led by local top executives and private equity investor Sequoia. The unit will be renamed Nearbuy starting Monday.

"India is a massive market and requires attention that Groupon can't do as part of its 48-country portfolio," said Ankur Warikoo, chief executive of Groupon India. "They feel the path (Groupon) India will follow to become a leader in local commerce may not be one that Groupon follows globally."

Along with the rebranding, the company will focus more on mobile apps, connecting buyers with deals in their localities. Currently, 60 per cent of the company's traffic and about 40 per cent of business comes from mobile devices.

Under the new dispensation, Groupon will remain a minority stakeholder. The new entity has secured an investment of about Rs 100 crore from Sequoia. The cofounders, Sequoia and Groupon will have one member each on the board and the entity will continue to be called Groupon India Pvt. "We raised fresh capital and fresh equity infusion and by virtue of that Groupon's ownership in the company has been reduced from 100 per cent to a minority ownership," said Warikoo, who is the cofounder of Nearbuy along with five other promoters.

This year has been particularly tough for Groupon in the US as its share plunged about 40 per cent to $4.6, substantially reducing its market value. In the US, Groupon, which sends daily deals to consumers by email, has been trying to reinvent itself by turning into an e-commerce marketplace. The change is in the works in India as well. Even though Nearbuy will continue to sell deals for stores, restaurants, health and beauty among other such services on its website, it will increase its focus to connect consumers with providers of services such as laundry, home cleaning, auto repairs and pest control through tie-ups with third-party providers.

As Groupon focuses on rebuilding itself as a marketplace in the US, the company had previously said it was looking for various options including selling its online shopping platform Ticket Monster in South Korea and businesses in "certain other Asian markets."

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